A retail store does not segregate sales and the amount of sales tax on sales. If the sales tax rate is 5% and the register total amounted to $262500 what is the amount of the sales taxes owed to the taxing agency?
A) $250000
B) $262500
C) $13125
D) $12500

Question

Quizplus · Accepted Answer

To find the sales tax, divide the total amount by 1.05 (since the total includes the sales tax) to find the sales amount, then multiply by 0.05. $262500 / 1.05 = $250000 (sales amount), and $250000 * 0.05 = $12500 (sales tax).

A Retail Store Does Not Segregate Sales and the Amount